Quick Overview
- 1#1: QuickBooks Online - Cloud-based accounting platform for small businesses offering invoicing, expense tracking, payroll, and real-time financial reports.
- 2#2: Xero - User-friendly cloud accounting software designed for small businesses to manage bank reconciliation, invoicing, and inventory.
- 3#3: FreshBooks - Intuitive invoicing and bookkeeping tool tailored for freelancers and small service-based businesses with time tracking and expenses.
- 4#4: Wave - Free online accounting software providing unlimited invoicing, receipt scanning, and basic financial reporting for small businesses.
- 5#5: Zoho Books - Affordable cloud bookkeeping solution integrated with Zoho suite for invoicing, bank feeds, and multi-currency support in small businesses.
- 6#6: Sage 50 - Desktop and cloud-hybrid accounting software for small businesses focusing on inventory, payroll, and industry-specific features.
- 7#7: ZipBooks - Modern bookkeeping app with smart invoicing, time tracking, and profitability insights for growing small businesses.
- 8#8: Manager - Free, open-source desktop and cloud accounting software for small businesses handling journals, reports, and multi-company setups.
- 9#9: Akaunting - Free open-source online accounting software with invoicing, expenses, and banking for small business financial management.
- 10#10: Kashoo - Simple cloud-based bookkeeping tool emphasizing bank imports, invoicing, and VAT handling for small businesses.
We prioritized tools based on feature depth, usability, reliability, and value, balancing functionality with accessibility to highlight the most impactful solutions for small businesses.
Comparison Table
Effective bookkeeping is vital for small businesses, and the tools in this comparison—including QuickBooks Online, Xero, FreshBooks, Wave, Zoho Books, and more—cater to diverse needs. Readers will discover key features, pricing structures, and user experiences to identify the best fit for their business size, workflow, and goals.
| # | Tool | Category | Overall | Features | Ease of Use | Value |
|---|---|---|---|---|---|---|
| 1 | QuickBooks Online Cloud-based accounting platform for small businesses offering invoicing, expense tracking, payroll, and real-time financial reports. | specialized | 9.5/10 | 9.8/10 | 9.2/10 | 9.3/10 |
| 2 | Xero User-friendly cloud accounting software designed for small businesses to manage bank reconciliation, invoicing, and inventory. | specialized | 9.2/10 | 9.4/10 | 9.1/10 | 8.8/10 |
| 3 | FreshBooks Intuitive invoicing and bookkeeping tool tailored for freelancers and small service-based businesses with time tracking and expenses. | specialized | 8.4/10 | 8.2/10 | 9.5/10 | 7.8/10 |
| 4 | Wave Free online accounting software providing unlimited invoicing, receipt scanning, and basic financial reporting for small businesses. | specialized | 8.4/10 | 7.6/10 | 9.2/10 | 9.5/10 |
| 5 | Zoho Books Affordable cloud bookkeeping solution integrated with Zoho suite for invoicing, bank feeds, and multi-currency support in small businesses. | specialized | 8.7/10 | 8.5/10 | 9.2/10 | 9.5/10 |
| 6 | Sage 50 Desktop and cloud-hybrid accounting software for small businesses focusing on inventory, payroll, and industry-specific features. | enterprise | 8.1/10 | 9.0/10 | 7.2/10 | 7.6/10 |
| 7 | ZipBooks Modern bookkeeping app with smart invoicing, time tracking, and profitability insights for growing small businesses. | specialized | 8.1/10 | 7.8/10 | 9.2/10 | 9.0/10 |
| 8 | Manager Free, open-source desktop and cloud accounting software for small businesses handling journals, reports, and multi-company setups. | other | 8.4/10 | 9.2/10 | 7.1/10 | 9.5/10 |
| 9 | Akaunting Free open-source online accounting software with invoicing, expenses, and banking for small business financial management. | other | 8.0/10 | 7.5/10 | 7.2/10 | 9.5/10 |
| 10 | Kashoo Simple cloud-based bookkeeping tool emphasizing bank imports, invoicing, and VAT handling for small businesses. | specialized | 7.4/10 | 6.5/10 | 9.2/10 | 8.1/10 |
Cloud-based accounting platform for small businesses offering invoicing, expense tracking, payroll, and real-time financial reports.
User-friendly cloud accounting software designed for small businesses to manage bank reconciliation, invoicing, and inventory.
Intuitive invoicing and bookkeeping tool tailored for freelancers and small service-based businesses with time tracking and expenses.
Free online accounting software providing unlimited invoicing, receipt scanning, and basic financial reporting for small businesses.
Affordable cloud bookkeeping solution integrated with Zoho suite for invoicing, bank feeds, and multi-currency support in small businesses.
Desktop and cloud-hybrid accounting software for small businesses focusing on inventory, payroll, and industry-specific features.
Modern bookkeeping app with smart invoicing, time tracking, and profitability insights for growing small businesses.
Free, open-source desktop and cloud accounting software for small businesses handling journals, reports, and multi-company setups.
Free open-source online accounting software with invoicing, expenses, and banking for small business financial management.
Simple cloud-based bookkeeping tool emphasizing bank imports, invoicing, and VAT handling for small businesses.
QuickBooks Online
specializedCloud-based accounting platform for small businesses offering invoicing, expense tracking, payroll, and real-time financial reports.
Automated bank feeds with AI-powered transaction categorization and reconciliation
QuickBooks Online is a leading cloud-based accounting software tailored for small businesses, enabling seamless management of invoicing, expenses, payroll, inventory, and financial reporting. It automates bank reconciliations, tracks cash flow in real-time, and provides customizable dashboards for insights into business health. With robust mobile access and extensive integrations, it scales effortlessly as businesses grow.
Pros
- Comprehensive feature set including payroll and inventory management
- Extensive app integrations with over 750 third-party tools
- Strong mobile app and real-time collaboration capabilities
Cons
- Higher-tier plans can become expensive
- Steeper learning curve for advanced features
- Occasional performance lags during peak usage
Best For
Small to medium-sized businesses seeking a scalable, all-in-one bookkeeping solution with automation and integrations.
Pricing
Starts at $30/month (Simple Start) up to $200/month (Advanced), with annual discounts and add-ons for payroll.
Xero
specializedUser-friendly cloud accounting software designed for small businesses to manage bank reconciliation, invoicing, and inventory.
Automatic bank transaction feeds with AI-powered reconciliation for effortless matching and categorization
Xero is a cloud-based accounting software tailored for small businesses, providing comprehensive tools for invoicing, bank reconciliation, expense tracking, payroll, and financial reporting. It supports real-time collaboration with unlimited users and accountants, automatic bank feeds, and seamless integrations with over 1,000 third-party apps. Its intuitive interface and mobile app make it ideal for on-the-go bookkeeping, helping users maintain accurate books without needing extensive accounting knowledge.
Pros
- Automatic bank feeds and smart reconciliation save hours on data entry
- Unlimited users and real-time multi-user access for teams and advisors
- Extensive app marketplace with over 1,000 integrations for customization
Cons
- Higher-tier plans required for advanced features like multi-currency and payroll
- Customer support is email/ticket-based without live chat for basic plans
- No offline access, requiring reliable internet
Best For
Small businesses and startups seeking scalable, cloud-based bookkeeping with strong advisor collaboration and automation.
Pricing
Starts at $15/month (Early plan) up to $78/month (Ultimate plan) when billed annually; includes unlimited users on all plans.
FreshBooks
specializedIntuitive invoicing and bookkeeping tool tailored for freelancers and small service-based businesses with time tracking and expenses.
Beautifully customizable invoices with built-in payment processing and recurring billing automation
FreshBooks is a cloud-based accounting platform tailored for small businesses, freelancers, and service providers, focusing on streamlined invoicing, expense tracking, and basic bookkeeping. It offers tools for time tracking, project management, client portals, and financial reporting to simplify cash flow management. While it handles core bookkeeping tasks like bank reconciliation and profit/loss statements, it lacks advanced features like inventory management found in more robust solutions.
Pros
- Intuitive, beginner-friendly interface with minimal learning curve
- Exceptional invoicing tools with automation and client payment reminders
- Integrated time tracking and project profitability insights
Cons
- Limited advanced reporting and customization options
- No inventory or job costing features for product-based businesses
- Pricing scales quickly with team size and billable clients
Best For
Freelancers and small service-based businesses needing effortless invoicing and basic bookkeeping.
Pricing
Lite ($19/mo), Plus ($33/mo), Premium ($60/mo), Select ($99/mo) when billed annually; 30-day free trial available.
Wave
specializedFree online accounting software providing unlimited invoicing, receipt scanning, and basic financial reporting for small businesses.
100% free unlimited accounting and invoicing with no user or transaction limits
Wave is a cloud-based accounting platform tailored for small businesses, freelancers, and solopreneurs, providing free tools for invoicing, expense tracking, receipt scanning, and basic bookkeeping. It automatically categorizes transactions, reconciles bank accounts, and generates essential financial reports like profit & loss statements. While core features are unlimited and free, add-ons like payment processing and payroll incur fees.
Pros
- Completely free core accounting and unlimited invoicing
- Intuitive interface with mobile app for on-the-go access
- Automatic bank reconciliation and receipt scanning
Cons
- Limited advanced reporting and no inventory management
- Transaction fees for payments (2.9% + 60¢ per card)
- Payroll and premium support only available in select regions
Best For
Freelancers and very small businesses with straightforward bookkeeping needs who prioritize cost savings over advanced features.
Pricing
Free for accounting, invoicing, and reports; payments at 2.9% + 60¢ (credit card) or 1% (bank); payroll from $20/mo + $6/employee.
Zoho Books
specializedAffordable cloud bookkeeping solution integrated with Zoho suite for invoicing, bank feeds, and multi-currency support in small businesses.
Advanced workflow automation rules that trigger actions like approvals and notifications based on custom conditions
Zoho Books is a cloud-based accounting software tailored for small businesses, offering essential bookkeeping tools like invoicing, expense tracking, bank reconciliation, and financial reporting. It supports inventory management, multi-currency transactions, and project tracking, with seamless automation for workflows. Integrated within the Zoho ecosystem, it enables connectivity with CRM, email, and other apps for streamlined operations.
Pros
- Highly affordable pricing with a free tier for micro-businesses
- Intuitive interface and mobile app for easy navigation
- Strong automation rules and Zoho ecosystem integrations
Cons
- Reporting customization is somewhat limited compared to competitors
- Advanced inventory features require higher-tier plans
- Customer support lacks phone option and can be slow
Best For
Small businesses seeking an affordable, user-friendly bookkeeping tool with CRM and productivity app integrations.
Pricing
Free for < $50K revenue (1 user); paid plans from $20/org/mo (Standard, 3 users) to $70/org/mo (Premium, unlimited users).
Sage 50
enterpriseDesktop and cloud-hybrid accounting software for small businesses focusing on inventory, payroll, and industry-specific features.
Sophisticated job costing and inventory tracking with lot/serial number support
Sage 50 is a robust desktop-based accounting software tailored for small to medium-sized businesses, offering comprehensive bookkeeping tools including invoicing, inventory tracking, payroll processing, and detailed financial reporting. It stands out with its strong capabilities in job costing and inventory management, making it suitable for industries like construction and manufacturing. While it includes cloud connectivity options for remote access and bank feeds, it primarily operates on Windows desktops, providing reliability for users who prefer on-premise solutions.
Pros
- Advanced inventory management and job costing for complex operations
- Extensive reporting and customization options
- Reliable integration with Microsoft Office and strong audit trail features
Cons
- Steep learning curve for beginners
- Limited mobile accessibility compared to cloud-native competitors
- Higher pricing may not suit very small businesses
Best For
Small to medium businesses in inventory-heavy or project-based industries that need powerful desktop accounting without full cloud reliance.
Pricing
Subscription starts at $62/month for Pro, $118/month for Premium, and $361/month for Quantum (billed annually; one-time purchase options also available).
ZipBooks
specializedModern bookkeeping app with smart invoicing, time tracking, and profitability insights for growing small businesses.
AI-powered profitability tracking that automatically analyzes project margins
ZipBooks is a cloud-based accounting software tailored for small businesses, providing tools for invoicing, expense tracking, bank reconciliation, and basic bookkeeping. It also includes time tracking, project management, and profitability reporting to help users manage cash flow and client work efficiently. The platform stands out with its free starter plan, making it accessible for solopreneurs and very small teams.
Pros
- Generous free plan with core invoicing and bookkeeping features
- Intuitive, modern interface that's quick to learn
- Built-in time tracking and project profitability insights
Cons
- Limited advanced reporting and customization options
- Fewer integrations compared to competitors like QuickBooks
- Scalability issues for growing businesses beyond 10-20 clients
Best For
Freelancers and micro-businesses seeking simple, cost-effective bookkeeping without a steep learning curve.
Pricing
Free starter plan; Smarter ($17/mo), Sophisticated ($37/mo), and Bookkeeper ($60/mo) plans billed annually.
Manager
otherFree, open-source desktop and cloud accounting software for small businesses handling journals, reports, and multi-company setups.
Fully editable forms and reports with unlimited customization without coding or add-ons
Manager.io is a free, open-source desktop accounting software tailored for small businesses, offering double-entry bookkeeping, invoicing, expense tracking, inventory management, and payroll processing. It supports multi-currency transactions, customizable reporting, and works entirely offline without subscription limits on transactions or clients. Ideal for users seeking powerful financial tools without recurring costs, it emphasizes flexibility through editable forms and email templates.
Pros
- Completely free for single-user/single-entity use with no limits on transactions
- Highly customizable forms, reports, and workflows
- Offline functionality and strong multi-currency support
Cons
- Steep learning curve for non-accountants due to complex interface
- Dated user interface lacking modern polish
- Limited native integrations and no dedicated mobile app
Best For
Tech-savvy small business owners or accountants needing robust, no-cost bookkeeping with offline access and high customization.
Pricing
Free forever for single-user desktop version; cloud/multi-user plans start at $19/month.
Akaunting
otherFree open-source online accounting software with invoicing, expenses, and banking for small business financial management.
100% free and open-source self-hosted core with unlimited companies and users
Akaunting is a free, open-source accounting software tailored for small businesses, freelancers, and entrepreneurs, offering invoicing, expense tracking, bank reconciliation, inventory management, and financial reporting. It supports multi-company, multi-currency, and multi-language setups through a modern web-based interface. Users can self-host it on their own servers or opt for cloud-hosted plans with premium modules for added functionality.
Pros
- Completely free open-source core with no usage limits
- Modular app store for customizable features like CRM and projects
- Strong multi-currency and multi-company support out-of-the-box
Cons
- Self-hosting requires technical setup and server maintenance
- Limited official support for free version; relies on community
- Advanced features like payroll often require paid modules or hosting
Best For
Tech-savvy small businesses and freelancers seeking a cost-free, customizable bookkeeping solution they can self-host.
Pricing
Free self-hosted version; cloud hosting starts at €9/month per company with premium apps from €2/month.
Kashoo
specializedSimple cloud-based bookkeeping tool emphasizing bank imports, invoicing, and VAT handling for small businesses.
SmartScan AI-powered receipt scanning that instantly categorizes and enters expense data from photos
Kashoo is a cloud-based bookkeeping software tailored for small businesses, freelancers, and sole proprietors, offering simple tools for invoicing, expense tracking, and bank reconciliation. It emphasizes ease of use with features like mobile receipt scanning via SmartScan technology, which automatically extracts data from photos. The platform provides basic financial reports and supports multi-currency transactions, making it suitable for straightforward accounting needs without overwhelming complexity.
Pros
- Intuitive, minimalist interface ideal for non-accountants
- Powerful SmartScan for effortless receipt capture and data entry
- Affordable pricing with unlimited invoices and users
Cons
- Limited advanced features like inventory tracking or payroll
- Fewer third-party integrations compared to competitors
- Reporting capabilities are basic and lack customization
Best For
Freelancers and micro-businesses with simple bookkeeping needs who want a hassle-free, mobile-friendly solution.
Pricing
Starts at $20 CAD/month (Simple plan); Standard at $35 CAD/month; Premium at $50 CAD/month (annual billing discounts available).
Conclusion
After reviewing the top 10 tools, it’s clear the highest-performing solutions deliver tailored features for small businesses. At the summit, QuickBooks Online excels with its all-in-one cloud platform, including invoicing, expense tracking, payroll, and real-time reports. While Xero and FreshBooks are strong alternatives—with Xero’s user-friendliness and FreshBooks’ focus on service-based needs—QuickBooks Online remains the most versatile choice for diverse small business operations.
Take the next step in streamlining your bookkeeping: try QuickBooks Online today, explore its robust features, and discover why it’s the top pick for small business success.
Tools Reviewed
All tools were independently evaluated for this comparison